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Home My WebLink AboutCO 612• ! Image Project Order Fiie hover Page XNVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned dt.tring a special rescan activity or are viewable by direct inspection of the file. Order File Identifier Organizing (done) RE CAN Color Items: ^ Greyscale Items: ^ Poor Quality Originals: ^ Other: NOTES: BY: M~ria ~_ Project Proofing BY: Maria Scanning Preparation BY: Maria Production Scanning III ^ Rescan Needed III IIIIII II II III OVERSIZED (Scannable) ^ Maps: ^ Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ^ Logs of various kinds: ^ Other:: / ~ /s/ III IIIIIIIIIII II III /s/ + =TOTAL PAGES ~~,. (Count does not include cover sheet~~~ /s/ Stage 1 Page Count from Scanned File: ~~ (Count does include cov~sheet) Page Count Matches Number in Scanning Preparation: --~,/ YES BY: Maria Date: ~ ~ 7 ~~ Stage ~ If NO in stage 1, page(s) discrepancies were found: YES BY: Maria Date: Scanning is complete at this point unless rescanning is required. iMP ,ioiaiiuii~iiuu ReScanned III IIIIIIIIIII IIIII BY: Maria Date: /s/ Comments about this file: Quality Checked III IIfIII III IIII II ^ Two-sided IIIIIIIIIII DIGITAL DATA ^ Diskettes, No. ^ Other, No/Type: Date: Date: ~, x30=_ Date: ~' P 10/6/2005 Orders File Cover Page.doc • • INDEX CONSERVATION ORDER NO. 612 Milne Point Unit S-43 1) November 13, 2008 BP Exploration (Alaska), Ines request for a Spacing Exception 5-43 2) November 26, 2008 Notice of Hearing, affidavit of mailing, a-mail list, bulk mailing list CONSERVATION ORDER NO. 612 r • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage, Alaska 99501 Re: THE APPLICATION OF BP Exploration (Alaska) Inc. for an order granting an exception to the well spacing requirements of 20 AAC 25.055(a)(3) to allow drilling, completion, testing, and regular production of the proposed Milne Point Unit No. S-43 oil development well within the same governmental quarter section as, and within 1000 feet of, other wells in the Milne Point Unit that are producing from or capable of producing from the same pool. Docket Number: CO-08-35 Conservation Order No. 612 Milne Point Unit No. S-43 Oil Development Well January 26, 2009 NOTICE CLOSING DOCKET BY THE COMMISSION: The Commission has the closed the Docket in the above captioned matter. ENTERED AND EFFECTIVE at Anchorage, Alaska and this 26th day of January, 2009. BY DIRECTION OF THE COMMISSION n r~ _ ~~~~- ~ ! , Jod~ J. C lo'nlbie Special ' siis~tant to the Commission • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage, Alaska 99501 Re: THE APPLICATION OF BP Exploration (Alaska) ) Inc. for an order granting an exception to the well ) Docket Number: CO-08-35 spacing requirements of 20 AAC 25.055(a)(3) to ) Conservation Order No. 612 allow drilling, completion, testing, and regular ) production of the proposed Milne Point Unit No. ) Milne Point Unit No. 5-43 S-43 oil development well within the same ) Oil Development Well governmental quarter section as, and within 1000 ) feet of, other wells in the Milne Point Unit that are ) January 26, 2009 producing from or capable of producing from the ) same pool. ) IT APPEARING THAT: 1. BP Exploration (Alaska) Inc. (BPXA), by letter dated November 13, 2008 and received November 14, 2008 by the Alaska Oil and Gas Conservation Commission (Commission), requests an order granting an exception to the well spacing requirements of 20 AAC 25.055(a)(3) to allow drilling, completion, testing, and regular production of the proposed Milne Point Unit No. 5-43 (MPU 5-43) oil development well within the same governmental quarter section as the MPU 5-37 and proposed MPU S-41A wells, and within 1000 feet of the proposed MPU S-41A well, within the Milne Point Unit, Ugnu Undefined Oil Pool, North Slope Borough, Alaska. 2. On November 26, 2008, pursuant to 20 AAC 25.540, the Commission published in the ANCt-~oRA~E DAtt,Y NEws notice of the opportunity for a public hearing on January 6, 2009. 3. No protest to the application or request for a hearing was received. 4. The public hearing was vacated on December 31, 2008. FINDINGS: 1. BPXA is the operator of the Milne Point Unit and will be the operator of the MPU 5-43 well, which will be within the Milne Point Unit, Ugnu Undefined Oil Pool, North Slope Borough, Alaska. 2. The MPU 5-43 well is proposed as a deviated oil development well with a surface location 3216 feet from the south line (FSL) and 547 feet from the east line (FEL) of Section 12, T12N, R10E, Umiat Meridian (U.M.), and a projected bottom hole location 743' FSL, 4473' FEL of Section 7, T12N, R11E, U.M. 3. The MPU 5-43 well will open Ugnu Undefined Oil Pool reservoirs-that are, or may be, capable of production in the MPU 5-37 and proposed MPU S-41A wells-within the southwest quarter of Section 7, T12N, R11E, U.M. The anticipated Ugnu productive pool in • • MPU 5-37 and proposed MPU S-41A and MPU 5-43 will all lie in the same governmental quarter section. 4. The anticipated Ugnu productive pool in MPU 5-43 will lie within 1000 feet of the Ugnu productive pool in the proposed MPU S-41A well: i. e., the MPU 5-43 well will be drilled and completed within 1000 feet of another well (proposed MPU S-41A drilled to or possibly capable of producing from the same pool). 5. By certified mail, BPXA sent notice of the application for an order granting an exception to the well spacing requirements of 20 AAC 25.055 to all owners, landowners, and operators of all properties within 1000 feet of each anticipated productive interval of the proposed MPU S-43 well. BPXA provided the Commission the notice, date of mailing, and addresses to which the notice was sent. 6. MPU S-43 is part of a multi-well pilot project that is intended to test different techniques to recover cold, viscous oil from the relatively shallow and unconsolidated reservoir sands of the Ugnu Undefined Oil Pool. It will be drilled to a location within the crest of a structural compartment to confirm the feasibility of an experimental method of recovering oil and sand from the Ugnu reservoirs. By modifying the spacing requirements for the pilot project wells, BPXA will be able to more accurately compare the MPU 5-43 recovery rate with the recovery rate of the nearby MPU S-41A conventional horizontal well. CONCLUSIONS: 1. The requested exceptions to 20 AAC 25.055(a)(3) are necessary to allow drilling, completion, testing, and regular production of the proposed MPU 5-43 oil development well. This well is needed to determine which production methods will promote more effective recovery of oil from the Ugnu Undefined Oil Pool. 2. Granting a spacing exception to allow drilling, completion, testing, and regular production of the MPU 5-43 well will not result in waste or jeopardize the correlative rights of adjoining or nearby owners. NOW, THEREFORE, IT IS ORDERED: Pursuant to the Commission's authority under AS 31.05.030 and 20 AAC 25.055, the Commission approves BPXA's application for an order granting an exception to the well spacing provisions of 20 AAC 25.055(a)(3) to allow drilling, completion, testing, and regular production Conservation Order No. 612 Effective January 26, 2009 Page 2 of 3 of the MPU S-43 well. BPXA may proceed with regular production as long as it complies with the terms of the Milne Point Unit agreement and all other legal requirements. ENTERED at Anchorage at.ns ~ ~~r ~~ ,- ~~ .~ a ,~ `~ ~~~~ e, Alaska, and dated January 26, 2009. ~: Daniel T. Se ount, Jr., Chair Alaska Oil and Gas Conservation Commission .. ~~:. G -~ - 4 ,, •il~fltitil~~~ Cathy P. ` oerster, Commissioner Alaska Oil and Gas Conservation Commission RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The Commission shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the Commission denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the Commission grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the Commission, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision on reconsideration. As provided in AS 31.05.080(b), "[t]he questions reviewed on appeal are limited to the questions presented to the Commission by the application for reconsideration." In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. Conservation Order No. 612 Effective January 26, 2009 Page 3 of 3 • Mary Jones David McCaleb Cindi Walker XTO Energy, Inc. IHS Energy Group Tesoro Refining and Marketing Co. Cartography GEPS Supply & Distribution 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 300 Concord Plaza Drive Ft. Worth, TX 76102-6298 Houston, TX 77056 San Antonio, TX 78216 George Vaught, Jr. Jerry Hodgden Richard Neahring PO Box 13557 Hodgden Oil Company NRG Associates Denver, CO 80201-3557 408 18th Street President Golden, CO 80401-2433 PO Box 1655 Colorado Springs, CO 80901 Mark Wedman Schlumberger Ciri Halliburton Drilling and Measurements Land Department 6900 Arctic Blvd. 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99502 Anchorage, AK 99503 Anchorage, AK 99503 Baker Oil Tools Ivan Gillian Jill Schneider 4730 Business Park Blvd., #44 9649 Musket Bell Cr.#5 US Geological Survey Anchorage, AK 99503 Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508 Gordon Severson Jack Hakkila Darwin Waldsmith 3201 Westmar Cr. PO Box 190083 PO Box 39309 Anchorage, AK 99508-4336 Anchorage, AK 99519 Ninilchick, AK 99639 James Gibbs Kenai National Wildlife Refuge Penny Vadla PO Box 1597 Refuge Manager 399 West Riverview Avenue Soldotna, AK 99669 PO Box 2139 Soldotna, AK 99669-7714 Soldotna, AK 99669-2139 Richard Wagner Cliff Burglin Bernie Karl PO Box 60868 PO Box 70131 K&K Recycling Inc. Fairbanks, AK 99706 Fairbanks, AK 99707 PO Box 58055 Fairbanks, AK 99711 North Slope Borough PO Box 69 Barrow, AK 99723 ;i 'lii'J~rG{i Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Tuesday, January 27, 2009 9:08 AM Subject: CO 611 and CO 612 MPU Attachments: co611.pdf; co612.pdf BCC:Aaron Gluzman; caunderwood@marathonoil.com; Dale Hoffman; Fridiric Grenier; Gary Orr; Joe Longo; Lamont Frazer; Marc Kuck; Mary Aschoff; Maurizio Grandi; P Bates; Richard Garrard; Sandra Lemke; Scott Nash; Steve Virant; Tom Gennings; Willem Vollenbrock; William Van Dyke; Woolf, Wendy C (DNR); Anna Raff; Barbara F Fullmer; bbritch; Bill Walker; Brad McKim; Brandon Gagnon; Brian Gillespie; Brit Lively; Bruce Webb; buonoje; Cammy Taylor; Cande.Brandow; carol Smyth; Cary Carrigan; Charles O'Donnell; Chris Gay; Cliff Posey; Dan Bross; dapa; Daryl J. Kleppin; David Brown; David Gorney; David Hall; David House; David L Boelens; David Steingreaber; ddonkel; Deborah Jones; doug_schultze; Eric Lidji ;Evan Harness; eyancy; foms2@mtaonline.net; Francis S. Sommer; Fred Steece; Garland Robinson; Gary Laughlin; Gary Rogers; Gary Schultz; ghammons; Gordon Pospisil; Gregg Nady; gspfoff; Hank Alford; Harry Engel; Havelock, Brian E (DNR); jah; James Scherr; Janet D. Platt; jejones; Jerry McCutcheon; Jim Arlington; Jim White; Jim Winegarner; Joe Nicks; John Garing; John S. Haworth; John Spain; John Tower; John W Katz; johnny.aiken@north-slope.org; Jon Goltz; Julie Houle; Kari Moriarty; Kaynell Zeman; Keith Wiles; knelson@petroleumnews.com; Krissell Crandall; Kristin Dirks; Laura Silliphant; Lynnda Kahn; mail=akpratts@acsalaska.net; mail=fours@mtaonline.net; Marilyn Crockett; Mark Dalton; Mark Hanley; Mark Kovac; Mark P. Worcester; Marquerite kremer; Matt Rader; Melanie Brown; Mike Bill; Mike Jacobs; Mike Mason; Mikel Schultz; Mindy Lewis; MJ Loveland; mjnelson; mkm7200; Nick W. Glover; NSK Problem Well Supv; NSU, ADW Well Integrity Engineer; Patty Alfaro; Paul Decker; Paul Winslow; Pierce, Sandra M (DNR); Randall Kanady; Randy L. Skillern; rcrotty; Rice, Cody J (DNR); rmclean; Rob McWhorter ; rob.g.dragnich@exxonmobil.com; Robert Campbell; Robert Province; Roger Belman; Rudy Brueggeman; Scott Cranswick; Shannon Donnelly; Sharmaine Copeland; Sondra Stewman; Sonja Frankllin; Stan Porhola; stanekj; Steve Lambert; Steve Moothart; Steven R. Rossberg; tablerk; Tamera Sheffield; Temple Davidson; Terrie Hubble; Tim Lawlor; Todd Durkee; Tony Hopfinger; trmjrl; Von Gemmingen, Scott E (DOR); Walter Featherly; Walter Quay; Wayne Rancier; Birnbaum, Alan J (LAW); Crisp, John H (DOA); Davies, Stephen F (DOA); Fleckenstein, Robert J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); Mahnken, Christine R (DOA); Maunder, Thomas E (DOA); McIver, Bren (DOA); McMains, Stephen E (DOA); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Saltmarsh, Arthur C (DOA); Scheve, Charles M (DOA); Seamount, Dan T (DOA); Smith, Chasity R (DOA); Williamson, Mary J (DOA) Attachments: co611.pdf;co612.pdf; Jody J. Colombie Special Assistant to the Commission Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 (907) 793-1221 Direct Line (907) 276-7542 Fax 1 /27/2009 -.LLj% �-Wd • • STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED A O_02914013 AFFIDAVIT OF PUBLICATION (PART2 OF THIS FORM) WITH ATTACHED COPY OF F1 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. November 25, 2008 R Ste 100 333 W 7th Ave Jod Colombie ° , Anchorage, AK 99501 PHONE PCN M 907-793-1238 DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News November 26, 2008 PO Box 149001 AK 99514 Anchora e E LINES MUST BE PRINTED IN HE g , DAT S 3 OWN TS ENTIRETY ON T SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement Legal® ^ Display Classif ied ^Other (Specify) SEE ATTACHED SEND INVOICE IN TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 PAGE 1 OF TOTAL OF ALL PAGES$ TO Anchors e AK 99501 2 PAGES REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN z ARn 0291 0 AM NT SY CC PGM LC ACCT FY NMR FIN OU oisr ua ~ 08 02140100 73451 2 REQUISITIONED BY: DIVISION APPROVAL: 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM • • Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The applications of BP Exploration (Alaska) Inc. for exception to the spacing requirements of 20 AAC 25.055(a)(3), for the drilling, completion and regular production of development oil wells within the same governmental quarter section as, and within 1000 feet of, wells capable of producing from the same interval. BP Exploration (Alaska) Inc. (BP), by letters received November 4 and November 14, 2008, requests the Alaska Oil and Gas Conservation Commission (Commission) issue orders for exceptions to the spacing requirements of 20 AAC 25.055(a)(3) to drill the Milne Point Unit No. S-41A and S-43 development oil wells in the Milne Point Unit, within the same governmental quarter section and within 1000 feet of wells capable of producing from the same interval. Milne Point Unit No. S-41 A Surface Location: 584 feet from the south line (FSL) and 518 feet from the east line (FEL) of Section 12, T12N, R10E, Umiat Meridian (U.M.) Bottomh~le•Location: 777 feet FSL and 1356 feet FEL, of Section 7, T12N, R11E, U.M. Milne Point Unit No. S-43 Surface Location: 3216 feet FSL and 547 feet FEL of Section 12, T12N, R10E, U.M. Bottomhole Location: 743 feet FSL and 4473 feet FEL, of Section 7, TI2N, RI lE, U.M. The Commission has tentatively scheduled a public hearing on this application for January 6, 2009 at 9:00 a.m. at the Alaska Oil and Gas Conservation Commission, at 333 West 7`~' Avenue, Suite 100, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the Commission no later than 4:30 p.m. on December 12, 2008. If a request for a hearing is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold the hearing, call 793-1221 after December 22, 2008. In addition, written comments regarding this application may be submitted to the Alaska Oil and Gas Conservation Commission, at 333 West 7`~' Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on December 26, 2008, except that, if a hearing is held, comments must be received no later than the conclusion of the January 6, 2009 hearing. If, because of a disability, special accommodations may be needed to comment or to attend the hearing, contact the Commission's Special Assistant, Jody Colombie, at 793-1221, no later than January 4, 2009. John K. Norman Commissioner • • Anchorage Daily News Affidavit of Publication IOOI Northway Dave. Anchorage, AK 99508 AD# DATE PO ACCOUNT SS1613 11/26/2008 02914014 STOF0330 STATE OF ALASKA THIRD JUDICIAL DISTRICT PRICE OTHER OTHER OTHER GRAND PER DAY CHARGES HARGES #2 CHARGES #3 TOTAL $249.00 $249.00 $0.00 $0.00 $0.00 $249.00 Christine Clark, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individu /a / Sul~ribed and ~fvorn to me before this date: ~~~ l~ ~,~ Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COMMISSION EXPIRES: ~'~ i /~~ . ~~l i 1'r<f ~fFF~ e G~?r'.~°a1 ;tom' ^ ~~f~~~1111) B 31?~'~~ ~, 11/26/2008 Notice of Pub13c Hearing , STATE OF ALASKA Alaska Oil and Gas Conservation Commissiort Re: The applications of BP Exploration (Alaska) Inc for exception to the spacing requirements of 20 AAC 25.055(a)(3), for the drilling, completion antl regular production of development oil wells within the same governmental quarter section as, and within 1000 z feet of, wells capable of producing from the same interval. BP Explofation (Alaska) Inc. (BP), by letters received November 4 and November 14, 2008, requests the Alaska Oil and .Gas Conservation Commission (COmMission) issue orders for exceptions to the spacing requirements of 20 AAC 25 O55(a)(3)to drill the Milne Point Unit No. 5-41A and 5-a3 development oil wells in the Milne Point Unit, within the same governmental quarter section and within 1000 feet of wells capable of producing from the same interval, Milne Point unit No. 5-41A Surface Location: 584 feet from the south line (FSU and 518 feet from the east line (FEU of: Section 12, T12N, R10E, Umiat Meridian (U. M.) Bottomhole Location: 777 feet FSL and 1356 feet FEL, Of Section 7, T12N, R11E, U.M. .Milne Point Unit No. 5-43 SurfaceLOCa[ion: 3216 feet FSL and Sal feet FEL Of Section.12, T12N, R10E, U.M. Bottomhole Location: 743 feet FSL and 4473 feet FEL, Of Section7, T12N, R11E, U.M. The Commission has tentatively scheduled a public hearing on this application for January. 6, 2009 at 9:00 a.m. at the Alaska Oil and~Gas Conservation Commission, at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. -TO request that the tentatively scheduled hearing be held, a written request must be filed with the Commission- ' no later than 4:30 p.m. on December 12, 2008. If a request for a hearing is not timely filed, the Commission may consitler the issuance of an order without a hearing. To learn if the Commission will hold-the hearing, call 793-1221 after December 22',:. '2008. In addition, written comments regarding this- application may be submitted to the Alaska Oil antl: Gas Conservation Commission, at 333 west 7th .Avenue, Suite 100; Anchorage, Alaska 99501. Comments must be received no later thah 4:30 p.m. on December 26, 2008, except that, if a hearing is held; comments must be received no later thah the. Conclusion of the January 6, 2009 hearing, If, because of a disability, special accommodations may be needed to comment or t0 attend the hearjng, contact the Commission's Special Assistant, lotly COIOmbie, at 793-1221, n0 later than7anuary.4, 2009. John K Norman ~. Commissioner AO.02914013 Published: November 26, 2008 STATE OF ALASKA ADVERTISING ORDER SEE BOTTOMfOR INVOICE A NOTICE TO PUBLISHER I ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /L O_02914013 AFFIDAVIT OF PUBLICATION (PART 2 OF THlS FORM) WITH ATTACHED COPY OF !1 ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOGCC R 333 West 7th Avenue. Suite 100 ° Anch~rage_ AK 9951 M 907-793-1238 o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 AGENCY CONTACT I DATE OF A.O. PHONE PCN DATES ADVERTISEMENT REQUIRED: November 26, 2008 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account # STOF0330 AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2008, and thereafter for consecutive days, the last publication appearing on the day of .2008, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This _ day of 2008, Notary public for state of My commission expires _ • ~ STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF A O_02914013 I`1 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FORINVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. November 21, 2008 R Ste 100 333 W 7th Ave Jod Colombie ° , Anchorage, AK 99501 PHONE PcN M 1238 793 907 - - DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News November 25, 2008 PO Box 149001 Anchorage, AK 99514 THE MATERIAL BETWEEN THE DOUB LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHO SPECIAL INSTRUCTIONS: Advertiseme to be published was e-mailed Type of Advertisement Legal® ^ Display Classif ied ^Other (Specify) SEE ATTA I~ Y S SEND INVOICE IN TRIPLICATE OGCC, 333 W. 7th Ave., Suite 100 PAGE 1 OF TOTAL OF ALL PAGES$ TO Anchora e AK 99501 2 PAGES REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN z AR1~ 029 10 CC PGM LC ACCT FY NMR FIN OUNT SY DIST LIO 1 08 02140100 73451 2 ~- - REQUISITIONED ~Y: DIVISION APPROVAL: 02-902 (Rev. 3/94) ` Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM • • Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The applications of BP Exploration (Alaska) Inc. for exception to the spacing requirements of 20 AAC 25.055(a)(3), for the drilling, completion and regular production of development oil wells within the same governmental quarter section as, and within 1000 feet of, wells capable of producing from the same interval. BP Exploration (Alaska) Inc. (BP), by letters received November 4 and November 14, 2008, requests the Alaska Oil and Gas Conservation Commission (Commission) issue orders for exceptions to the spacing requirements of 20 AAC 25.055(a)(3) to drill the Milne Point Unit No. S-41A and S-43 development oil wells in the Milne Point Unit, within the same governmental quarter section and within 1000 feet of wells capable of producing from the same interval. Milne Point Unit No. S-41A Surface Location: 584 feet from the south line (FSL) and 518 feet from the east line (FEL) of Section 12, T12N, R10E, Umiat Meridian (U.M.) Bottomhole Location: 777 feet FSL and 1356 feet FEL, of Section 7, T12N, R11E, U.M. Milne Point Unit No. S-43 Surface Location: 3216 feet FSL and 547 feet FEL of Section 12, T12N, R10E, U.M. Bottomhole Location: 743 feet FSL and 4473 feet FEL, of Section 7, T12N, R1 lE, U.M. The Commission has tentatively scheduled a public hearing on this application for January 6, 2009 at 9:00 a.m. at the Alaska Oil and Gas Conservation Commission, at 333 West 7`~' Avenue, Suite 100, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the Commission no later than 4:30 p.m. on December 12, 2008. If a request for a hearing is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold the hearing, call 793-1221 after December 22, 2008. In addition, written comments regarding this application may be submitted to the Alaska Oil and Gas Conservation Commission, at 333 West 7`~' Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on December 26, 2008, except that, if a hearing is held, comments must be received no later than the conclusion of the January 6, 2009 hearing. ~'~~ If, because of a disability, special ccommodat ons may be needed to comment or to attend the hearing, contact the Co s pe ~ A sistant, Jody Colombie, at 793-1221, no later than January 4, 2009. / ,, _ STATE OF ALASKA I NOTICE TO PUBLISHER ADVERTISING ORDER NO. RTI ING ORDER NO CERTIFIED ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVE S ~ AO_02914013 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7`h Avenue. Suite 100 Anchnrage_ AK 9951 PHONE PCN M 907-793-1238 - DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 November 25, 2008 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account # STOF0330 United states of America State of AFFIDAVIT OF PUBLICATION REMINDER ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. division. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2008, and thereafter for consecutive days, the last publication appearing on the day of , 2008, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This _ day of 2008, Notary public for state of My commission expires • ~ Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Friday, November 21, 2008 3:24 PM Subject: MPU S-41A and S-43 Attachments: MPU S-41A and MPU S-43.pdf BCC:'Aaron Gluzman'; caunderwood@marathonoil.com; 'Dale Hoffman'; Fridiric Grenier; 'Joe Longo'; 'Lamont Frazer'; Marc Kuck; 'Mary Aschoff; Maurizio Grandi; P Bates; Richard Garrard; 'Sandra Lemke'; 'Scott Nash'; 'Steve Virant'; Tom Gennings;'Willem Vollenbrock';'William Van Dyke'; Woolf, Wendy C (DNR);'Aleutians East Borough'; 'Anna Raff ; 'Barbara F Fullmer'; 'bbritch'; 'Bill Walker'; 'Brad McKim'; 'Brandon Gagnon'; 'Brian Gillespie'; 'Brian Havelock'; 'Brit Lively'; 'Bruce Webb'; 'buonoje'; 'Cammy Taylor'; 'Cande.Brandow'; 'carol smyth'; 'Cary Carrigan'; 'Charles O'Donnell'; 'Chris Gay'; 'Cliff Posey'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin'; 'David Brown'; 'David Hall'; David House; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; 'Deborah J. Jones'; 'doug_schultze'; 'Eric Lidji '; 'Evan Harness'; 'eyancy'; 'foms2@mtaonline.net'; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gregg Nady'; 'gregory micallef ; 'gspfoff ; 'Hank Alford'; 'Harry Engel'; 'jah'; 'James Scherr'; 'Janet D. Platt'; 'jejones'; 'Jerry McCutcheon'; 'Jim Arlington'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'John W Katz'; johnny.aiken@north-slope.org; 'Jon Goltz'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; knelson@petroleumnews.com; 'Krissell Crandall'; 'Kristin Dirks'; 'Laura Silliphant'; 'Lois'; 'Lynnda Kahn'; 'mail=akpratts@acsalaska.net'; 'mail=fours@mtaonline.net'; 'Marilyn Crockett'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marguerite kremer'; 'Matt Rader'; Melanie Brown; 'Mike Bill'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'Nick W. Glover'; NSK Problem Well Supv; NSU, ADW Well Integrity Engineer; 'Patty Alfaro'; 'Paul Decker'; 'Paul Winslow'; Pierce, Sandra M (DNR); 'Randall Kanady'; 'Randy L. Skillern'; 'rcrotty'; Rice, Cody J (DNR); 'rmclean'; 'Rob McWhorter '; rob.g.dragnich@exxonmobil.com; 'Robert Campbell'; 'Robert Fowler'; 'Robert Province'; 'Roger Belman'; 'Rudy Brueggeman'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland'; 'Sondra Stewman'; 'Sonja Frankllin'; 'Stan Porhola'; 'stanekj'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'tablerk'; 'Tamera Sheffield'; 'Temple Davidson'; 'Terrie Hubble'; 'Tim Lawlor'; 'Todd Durkee'; Tony Hopfinger; 'trmjrl'; 'Walter Featherly'; 'Walter Quay'; 'Wayne Rancier'; Birnbaum, Alan J (LAW); Crisp, John H (DOA); Davies, Stephen F (DOA); Fleckenstein, Robert J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); Mahnken, Christine R (DOA); Maunder, Thomas E (DOA); McIver, C (DOA); McMains, Stephen E (DOA); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Saltmarsh, Arthur C (DOA); Scheve, Charles M (DOA); Seamount, Dan T (DOA); Smith, Chasity R (DOA); Williamson, Mary J (DOA) Attachments:MPU S-41A and MPU 5-43.pdf; Please disregard the public notice you recently received from me. Jody Jody J. Colombie Special Assistant to the Commission Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 (907) 793-1221 Direct Line (907) 276-7542 Fax 11/21/2008 • • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Friday, November 21, 2008 3:22 PM To: 'Ads, Legal' Subject: Please USE this one. Attachments: MPU S-41A and S-43 Notice of Hearing.doc; Ad Order ADN form.doc Thank you Jody J. Colombie Special Assistant to the Commission Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 (907) 793-1221 Direct Line (907) 276-7542 Fax Page 1 of 1 11 /21 /2008 Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 North Slope Borough PO Box 69 Barrow, AK 99723 • David McCaleb Cindi Walker IHS Energy Group Tesoro Refining and Marketing Co. GEPS Supply & Distribution 5333 Westheimer, Ste 100 300 Concord Plaza Drive Houston, TX 77056 San Antonio, TX 78216 Jerry Hodgden Richard Neahring Hodgden Oil Company NRG Associates 408 18th Street President Golden, CO 80401-2433 PO Box 1655 Colorado Springs, CO 80901 Schlumberger Ciri Drilling and Measurements Land Department 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99503 Anchorage, AK 99503 Ivan Gillian Jill Schneider 9649 Musket Bell Cr.#5 US Geological Survey Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508 Jack Hakkila Darwin Waldsmith PO Box 190083 PO Box 39309 Anchorage, AK 99519 Ninilchick, AK 99639 Kenai National Wildlife Refuge Penny Vadla Refuge Manager 399 West Riverview Avenue PO Box 2139 Soldotna, AK 99669-7714 Soldotna, AK 99669-2139 Cliff Burglin Bernie Karl PO Box 70131 K&K Recycling Inc. Fairbanks, AK 99707 PO Box 58055 Fairbanks, AK 99711 `:4' 1 by ~ ~ BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 995 1 9-661 2 (9071561-51 1 1 November 13, 2008 Dan Seamount, Commissioner , , , Alaska Oil & Gas Conservation Commission ~'~ ~ 333 West 7`h Avenue, Suite 100 Anchorage, AK 99501 RE: Request for Well Spacing Exception -Milne Point Ugnu Well MPS-43 Dear Commissioner Norman: BP Exploration (Alaska) Inc. (`BP") is appling for an exception to the provisions of 20 AAC 25.055 for the drilling of MPU S-43 (the "Well") and request approval to drill the well as described in this Spacing Exception Application. A brief explanation for why the operator has chosen to drill the specified location. The well is part of a multi-year appraisal of the Ugnu heavy oil reservoirs at the Milne Point S-Pad. The objective of the well is to test the cold heavy oil production with sand method. The location was selected based on oil column thickness and location within the crest of the structural compartment. The well is currently being permitted and is scheduled to be drilled in December of 2008. The completion and production test of the Well will commence in the summer of 2009 following tract operation approval. The names of all Owners, landowners, and operators of all properties within 1,000 feet of the well or portion of the well requiring the spacing exception that is drilled for oil or within 3,000 feet of a well or portion of a well that is drilled for gas. The following is a list of all owners, landowners and operators of any property within 1,000 ft of the portion of this oil well requiring a spacing exception: BP Exploration (Alaska) Inc. (originator of this request) Department of Natural Resources, State of Alaska (mailed 11/13/08) ConocoPhillips Alaska, Inc. (mailed 11/13/08) ExxonMobil Alaska Production, Inc. (mailed 11/13/08) Chevron U.S.A. Inc. (mailed 11/13/08) • • A copy of the notice sent by certified mail to the owners, landowners and operators described above, the date of mailing, and the addresses to which the notice was sent. Copies of the notices to owners sent via certified mail, address and date of mailing are attached to this application. An affidavit by a person acquainted with the facts verifying that the facts are true and that the plat correctly portrays pertinent and required data. I am acquainted with the facts and can verify that the facts listed in this spacing exception request are true and that the enclosed plat correctly portrays pertinent and required data. If you have any questions or require any additional information, please contact the undersigned at 564-4095 or Jeff Schrader at 564-5221. Done at Anchorage, Alaska and dated November 13, 2008 fir,, ~-- ~~- Erik J. Hulm Heavy Oil Subsurface Team Leader BP Exploration (Alaska) Inc. Attachments: CHECKLIST -SPACING EXCEPTION APPLICATION PLAT SHOWING MPS-43 PLANNED LOCATION cc: Steve Davies, AOGCC Jeff Schrader, BP State of Alaska 3"' District Subscribed and Sworn before me, a Notary Public, in and for the State of Alaska, on the 13"' day of November 2008, Erik J. Hulm, personally appeared before me and signed the above. (Seal) ~1,,,~~\ o n M. Kulish ~ Notary My Commission expires: 10/18/2012 Commission Number: 111776 i ~ CHECKLIST -SPACING EXCEPTION APPLICATION OPERATOR BP PROPERTY ID/ LEASE ADL390109/ADL390110 FIELD/POOL MPU/Ugnu WELL NAME MPS-43 VERTICAL ^ EXPLORATORY ^ GAS ^ DEVIATED ® DELINEATION ® OIL DEVELOPMENT ^ SURFACE LOCATION PRODUCTIVE INTERVALS (Top and Bottom) BOTTOM HOLE 3216.41' FS L and 547' FE L, S12, T 12N, R 10E, Umiat M. 945.54' FS L and 4542.57' FE L, S7, T 12N, R 11 E, Umiat M. 835.06' FS L and 4505' FE L, S7, T 12N, R 11 E, Umiat M. 742.86' FS L and 4473.2' FE L, S7, T 12N, R 11 E, Umiat M. Check applicable reason(s) for spacing exception: 1 to drill a well for oil within 500 feet of a ro ert line 2 to drill a well for as within 1500 feet of a ro ert line (3) to drill and complete more than one oil well in a governmental quarter section; or ® to drill and complete an oil well closer than 1000' to any well drilling to or ca able of roducin from the same ool ^ 4 to drill and com lete more than one as well in a overnmental section; or ^ or to drill and complete a gas well closer than 3000' to any well drilling to or ca able of roducin from the same ool Does the application contain: x A brief ex lanation for wh the o erator has chosen to drill the s ecified location. A plat drawn to a scale of one inch equaling 2,640 feet or larger, showing the location of the well or portion of the well for which the exception is sought, all other completed and drilling wells on the x property, and all adjoining properties and wells within 1,000 feet of a well or portion of the well requiring the spacing exception that is drilling for oil or within 3,000 feet of a well or portion of the well re uirin the s acin exce tion that is drillin for as. The names of all owners, landowners, and operators of all properties within 1,000 feet of a well or x portion of the well requiring the spacing exception that is drilling for oil or within 3,000 feet of a well or ortion of the well re uirin the s acin exce tion that is drillin for as. x A copy of the notice sent by certified mail to the owners, landowners and operators described above, the date of mailin ,and the addresses to which the notice was sent. x An affidavit by a person acquainted with the facts verifying that all facts are true and that the plat correct) ortra s ertinent and re wired data. If the operator requests a variance from the notice requirements of 20AAC25.055(d), sufficient information to demonstrate that it is not feasible to comply with the notice requirements because of the com )exit of ownershi within the notice area. ~~~, v ~~ ,,- ~„ _., ~;~ im ~ aioro.agn by ~ i~ BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 November 13, 2008 Mr. Kevin Banks Division of Oil and Gas Departmeent of Natural Resources, State of Alaska 550 West 5`h Avenue, Suite 800 Anchorage, AK 99501 { ....: ~, .~tj RE: Notification that BPX has submitted to the Alaska Oil and Gas Conservation Commission a Request for a Well Spacing Exception -Milne Point Ugnu well MPS-43 Dear Mr. Kevin Banks: BP Exploration (Alaska) Inc. ("BP") hereby gives notice that it has applied to the Alaska Oil and Gas Conservation Commission ("AOGCC") for a exception to the provisions of 20 AAC 25.055 for the drilling of MPU S-43 (the "Well") and request approval to drill the well as described in the Spacing Exception Application. The Well will require a spacing exception per the statewide rules of 20 AAC 25.055 (a)(3) because the Well opens the same productive interval as an existing well that falls within the same quarter governmental section and the Well is closer than 1000' of a well capable of producing from the same pool. As can be seen from the enclosed plat the reservoir section of the Well will be completed in the SW quarter section of Section 7, Township 12, Range 11, Umiat meridian and falls in the same quarter governmental section as the Milne Point S-37 and S-41A wells. BP is appraising the recovery of heavy oil from the Ugnu reservoirs in the Milne Point Unit. BP's initial efforts are focused on the Milne Point S-Pad area. MPS-43 will test the cold heavy oil production with sand recovery method. The Well will be drilled this year but will not be completed and produced until summer of 2009. Since the productive interval to be opened by the well fall within 1000 feet of a lease in which you are an owner, landowner, or operator you are being notified of this request for exception from the well spacing rule. by BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 995 1 9-661 2 (907)561-5111 November 13, 2008 Mr. Craig Haymes ExxonMobil Alaska Production, Inc. PO Box 196601 3301 C. St. Suite 400 Anchorage, AK 99519-6601 RE: Notification that BPX has submitted to the Alaska Oil and Gas Conservation Commission a Request for a Well Spacing Exception -Milne Point Ugnu well MPS-43 Dear Mr. Craig Haymes: BP Exploration (Alaska) Inc. ("BP") hereby gives notice that it has applied to the Alaska Oil and Gas Conservation Commission ("AOGCC") for a exception to the provisions of 20 AAC 25.055 for the drilling of MPU S-43 (the "Well") and request approval to drill the well as described in the Spacing Exception Application. The Well will require a spacing exception per the statewide rules of 20 AAC 25.055 (a)(3) because the Well opens the same productive interval as an existing well that falls within the same quarter governmental section and the Well is closer than 1000' of a well capable of producing from the same pool. As can be seen from the enclosed plat the reservoir section of the Well will be completed in the SW quarter section of Section 7, Township 12, Range 11, Umiat meridian and falls in the same quarter governmental section as the Milne Point S-37 and S-41A wells. BP is appraising the recovery of heavy oil from the Ugnu reservoirs in the Milne Point Unit. BP's initial efforts are focused on the Milne Point S-Pad area. MPS-43 will test the cold heavy oil production with sand recovery method. The Well will be drilled this year but will not be completed and produced until summer of 2009. Since the productive interval to be opened by the well fall within 1000 feet of a lease in which you are an owner, landowner, or operator you are being notified of this request for exception from the well spacing rule. • • If you have any questions or require any additional information, please contact the undersigned at 564-4095 or Jeff Schrader at 564-5221. Erik J. Hulm Heavy Oil Subsurface Team Leader BP Exploration (Alaska) Inc. Attachments: PLAT SHOWING MPS-43 PLANNED LOCATION cc: Jeff Schrader, BP by • ~ BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907)561-51 11 November 13, 2008 Mr. Erec Isaacson -, ConocoPhillips Alaska, Inc. PO Box 100360 700 "G" Street Anchorage, AK 99510-0360 RE: Notification that BPX has submitted to the Alaska Oil and Gas Conservation Commission a Request for a Well Spacing Exception -Milne Point Ugnu well MPS-43 Dear Mr. Erec Isaacson: BP Exploration (Alaska) Inc. ("BP") hereby gives notice that it has applied to the Alaska Oil and Gas Conservation Commission ("AOGCC") for a exception to the provisions of 20 AAC 25.055 for the drilling of MPU S-43 (the "Well") and request approval to drill the well as described in the Spacing Exception Application. The Well will require a spacing exception per the statewide rules of 20 AAC 25.055 (a)(3) because the Well opens the same productive interval as an existing well that falls within the same quarter governmental section and the Well is closer than 1000' of a well capable of producing from the same pool. As can be seen from the enclosed plat the reservoir section of the Well will be completed in the SW quarter section of Section 7, Township 12, Range 11, Umiat meridian and falls in the same quarter governmental section as the Milne Point S-37 and S-41A wells. BP is appraising the recovery of heavy oil from the Ugnu reservoirs in the Milne Point Unit. BP's initial efforts are focused on the Milne Point S-Pad area. MPS-43 will test the cold heavy oil production with sand recovery method. The Well will be drilled this year but will not be completed and produced until summer of 2009. Since the productive interval to be opened by the well fall within 1000 feet of a lease in which you are an owner, landowner, or operator you are being notified of this request for exception from the well spacing rule. • If you have any questions or require any additional information, please contact the undersigned at 564-4095 or Jeff Schrader at 564-5221. ~~ ~~ Erik J. Hulm Heavy Oil Subsurface Team Leader BP Exploration (Alaska) Inc. Attachments: PLAT SHOWING MPS-43 PLANNED LOCATION cc: Jeff Schrader, BP by r ~ •, BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (9071561-5111 November 13, 2008 +'~ E3 Mr. Glenn C. Fredrick ~ ° ~ ` "~ Chevron U.S.A. Inc. PO Box 196247 Anchorage, AK X9519-6247 RE: Notification that BPX has submitted to the Alaska Oil and Gas Conservation Commission a Request for a Well Spacing Exception -Milne Point Ugnu well MPS-43 Dear Mr. Glenn C. Fredrick: BP Exploration (Alaska) Inc. ("BP") hereby gives notice that it has applied to the Alaska Oil and Gas Conservation Commission ("AOGCC") for a exception to the provisions of 20 AAC 25.055 for the drilling of MPU S-43 (the "Well") and request approval to drill the well as described in the Spacing Exception Application. The Well will require a spacing exception per the statewide rules of 20 AAC 25.055 (a)(3) because the Well opens the same productive interval as an existing well that falls within the same quarter governmental section and the Well is closer than 1000' of a well capable of producing from the same pool. As can be seen from the enclosed plat the reservoir section of the Well will be completed in the SW quarter section of Section 7, Township 12, Range 11, Umiat meridian and falls in the same quarter governmental section as the Milne Point S-37 and S-41A wells. BP is appraising the recovery of heavy oil from the Ugnu reservoirs in the Milne Point Unit. BP's initial efforts are focused on the Milne Point S-Pad area. MPS-43 will test the cold heavy oil production with sand recovery method. The Well will be drilled this year but will not be completed and produced until summer of 2009. Since the productive interval to be opened by the well fall within 1000 feet of a lease in which you are an owner, landowner, or operator you are being notified of this request for exception from the well spacing rule. If you have any~estions or require any additional in~ation, please contact the undersigned at 564-4095 or Jeff Schrader at 564-5221. Erik J. Hulm Heavy Oil Subsurface Team Leader BP Exploration (Alaska) Inc. Attachments: PLAT SHOWING MPS-43 PLANNED LOCATION cc: Jeff Schrader, BP If you have any~stions or require any additional in~ation, please contact the undersigned at 56 -4095 or Jeff Schrader at 564-5221. i Erik J. Hulm Heavy Oil Subsurface Team Leader BP Exploration (Alaska) Inc. Attachments: PLAT SHOWING MPS-43 PLANNED LOCATION cc: Jeff Schrader, BP r` N ~~ ~N;VC \rw 4s4A ~- tL t1J Postage $ ~ ~ ~ ~~ f1J ~ Certifted Fee ~~ tT' 0^ Postmark - ~ ~. Retum Receipt Fee Here (Endorsement Required) ~s_ rl r ~~ ° ° Restricted Delvery Fee ~ ° Q (Endorsement Required) ~~ ° ° Total Postage & Fees ~~ f1J t1J t.r) u'1 ec p ent s Name (Please Prlnt Clearly) (To be completed b mailer) ° ° ° ° Street, t. No.;~r PO Box No. ~~ ~ ~ Ctty, State, Z1P+ 4 :.. .t. ., 0 0 ~' S .~s• ~' 111 IL Postage $ .- M1 (` ~ f1J ~ ~ Certified Fee ` ~ ~ ~r "' ~~• Postmark - ~ ~. Retum Receipt Fee (Endorsement Required) Here r rya _ --- ~ ~ ., ~ `~'~~ ° ° Restrcted Delivery Fee ° ° (Endorsement Required) ~~ ° ° Tatat Postage & Fees ~ A rt 7 ` "~ t1J fU u7 ul BC p cot's Name (Please PrJnt Clearly) (To be completed by mailer) . c_.. i ' ~ z - i ~~ Street Apt. No.; or PO Box No. ° ° r .~~ ~~ ~ ~ ty, St te, Z/P+ 4 AK 5tio -O ~ o :~~ .t. ru ru ~_ .~ ..o ~~ - rl rl Postage $ [~ ('~ ~ ~ ~ Certified Fee Q' Q' ~~ ~ ~ ~ Retum Receipt Fee -- ~ ~ (Endorsement Required) ~~ ° ° ResMcted Delivery Fee ° ° (Endorsement Required) ~~ ° ° Total Postage & Fees flJ (Lt ul ttl ReClp cot's Name (Please Print Clearly) (To be complel ~~ ° ° ~Ya_I~v~n{.7~I~_t.~__!.J_~J~7J~A~r._aF~~~_~_ ° ° Street, Apt. No.; or PO Box No. ' .. ~ °o °v S_~ vJe~s..~*~` A„~tSc~~t~__~Oc ~ ~ cry, era ®,-,ZfP+ 4 to o rq ~° 5~ :11 ~~~ m m _ ~~ ~ ~ ~ r ~ 1 \ ~ W~ v1n T :1 ~ S S ~~ f1J t1J Postage $ ['` (~ ~~ ~ ~ Certified Fee 0^ Q' ~ ~.. ~. Retum Receipt Fee - ~ ~ (Endorsement Required) ° ° Restricted DelNery Fee ~~ ° ° (Endorsement Required) ~ ° ° Totai Postage & Fees .v tiJ fLl u'1 u'1 eClp ent S ame (Please Print Clearly) (To bs er, °° - ° ° Street, Apt. No.; or PO Box No. _ x__ L'2.~_ i - ° ° P.o. ~ 24--------------------; ~ ~ ity,-State, Z1P+ 4 ° ° -- - --- - X9549 - N~ e :~~ ~~~